Vocabulary 4

2. average price that every unit of output sells for
5. phases of production that consist of increasing
7. production cost that varies as output changes; labor, energy, raw materials
8. a fuel created from living materials
10. production level where total cost equals total revenue; production needed if the firm is to recover its costs
13. Sum of variable cost plus fixed cost; all costs associated with production
14. the monetary value of a product
17. stage of production where output increases at a decreasing rate as more units of variable input are added
18. costs of production that do not change when output changes
20. broad category of fixed costs that includes interest, rent, taxes, and executive salaries
21. system of allocating goods and services without prices

1. level of production where marginal cost is equal to marginal revenue
3. quantity of output supplied that is equal to the quantity demanded at the equilibrium price
4. situation where quantity supplied is less than quantity demanded at a given price
6. a simplified version of a complex behavior expressed in the form of an equation, graph, or illustration
9. a situation where quantity supplied is greater than quantity demanded at a given price
11. electronic business or exchange conducted over the internet
12. total amount earned by a firm from the sale of its products; average price of a good sold times the quantity sold
15. extra cost of producing one additional unit of production
16. extra revenue from the sale of one additional unit of output
19. extra output due to the addition of one more unit of output